Wylde pushes Silver, Skelos on pension reform

If it’s Monday, it’s pension-talk day, first with Gov. Cuomo revving up the mayors on his call for pension reform and now the Partnership for New York City’s Kathryn Wylde sending a letter to Senate Republican Majority Leader Dean Skelos and Assembly Democratic Majority Speaker Sheldon Silver in support of a new pension plan for public employees. Here is the text of Wylde’s letter :

On behalf of the members of the Partnership for New York City, representing the largest private sector employers in the state, I write to urge you to enact the pension reform proposals that Governor Cuomo has called for in his 2012-13 Executive Budget. Our state and city cannot continue to attract and keep new talent and compete globally if we do not find ways to contain the growing costs of government.
Changing demographics are generating ever increasing demands on the pension system. During the past century, life expectancy increased by thirty years – more than all the past centuries. In 2010, there were 4.53 working New Yorkers (20-64) for each retirement-age New Yorker. The Cornell Program on Applied Demographics projects that by 2020 the number of working age New Yorkers per retiree will be only 3.76 and by 2030 the number will decrease to 3.11, representing a 30% reduction in the ratio of workers to retirees during a twenty year period.
The private sector has already had to adjust to these new realities, which means that most business employees are doing far more than public workers to share in the risks

and costs associated with their retirement plans. This was not something the private sector wanted to do, but it was necessary.

Retirement benefit costs are taking resources that are urgently needed for public services and infrastructure. New York City’s budget allocation for retirees is already $8 billion and these costs are increasing by more than 18% a year. With retirement benefits taking up 13% of the city budget, there are not adequate resources to devote to education, public safety and the other priorities that must be addressed if we are to keep the local economy and tax base growing. Moreover, New York City and other localities did not get the benefit of the 2010 pension reforms that were incorporated in the Tier V formula for state employees.
As a result of structural changes in the global economy, investment returns on New York pension funds cannot be counted on in the years ahead to keep up with rising costs of benefits. There is no choice but to adjust future benefits to align with demographic and economic realities.
Action this year to restrain the growth of pension costs will demonstrate to the business community that New York State is making the reforms necessary to insure its future fiscal and economic health. We hope you will work with the Governor to accomplish this most important objective.
Sincerely,
Kathryn Wylde